3 1evel 81 output at 200 lts per day. How will its total employment change? d. I
ID: 1125557 • Letter: 3
Question
3 1evel 81 output at 200 lts per day. How will its total employment change? d. Is it a cost saving move alt VIII. The technologies used by Carlo, Gary & Co with different capital and labor requirements at each level of production are as follows: Q-0, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10 And Total cost 100, 145, 185, 220, 255, 295, 340, 390, 445, 505, 570. Assuming that the price per unit of capital is S40.00 and the one per unit of labor is a. $10.00, construct a table made of Total Fixed Cost (TFC), Total Variable Cost (TVC), Average Variable Cost (AVC) Average total cost (ATC) and Marginal Cost (MC). Assuming price P $40.00 per unit, how many units of output should the firm produce? Explain your answer c. Suppose that inflation shift the price to $50.00 per unit. Does the firm make a profit? d. What would happen if P falls to $30.00 per unit? Explain your answerExplanation / Answer
b) Since firm is competitive it will produce at point where P=MC. So at Q=5 , P=MC. So firm will produce 2 unit of output.
c) At P= 50 firm will produce Q=7 , firm will suffer loss equals to -110.
d) At P= 30 firm will produce will not produce any output because at all output level marginal cost is greater than P.
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Q Total cost TFC TVC AVC ATC MC TR1 Profit1 TR2 Profit2 TR3 Profit3 0 100 100 0 0 -100 0 -100 0 -100 1 145 100 45 45 145 45 40 -105 50 -95 30 -115 2 185 100 85 43 93 40 80 -105 100 -85 60 -125 3 220 100 120 40 73 35 120 -100 150 -70 90 -130 4 255 100 155 39 64 35 160 -95 200 -55 120 -135 5 295 100 195 39 59 40 200 -95 250 -45 150 -145 6 340 100 240 40 57 45 240 -100 300 -40 180 -160 7 390 100 290 41 56 50 280 -110 350 -40 210 -180 8 445 100 345 43 56 55 320 -125 400 -45 240 -205 9 505 100 405 45 56 60 360 -145 450 -55 270 -235 10 570 100 470 47 57 65 400 -170 500 -70 300 -270Related Questions
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